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Leaders from derivatives exchanges and associations have called on the International Organization of Securities Commissions to take the lead in resolving concerns about cross-border application of certain rules. Read the letter from the industry leaders to IOSCO.

Related Summaries

Leaders should create a global regulator to handle fragmentation, extraterritoriality and cross-border regulation, says Tajinder Singh, deputy general of the International Organisation of Securities Commissions. "In order to tackle fragmentation, what is needed is a global institutional framework possibly established by international treaty that has enforcement authority, binding dispute-resolution settlement and sanction-enforcement capabilities," Singh said.

The International Organization of Securities Commissions says in a report that investors, because of the low-yield environment, are turning to the same risky investments that led to the financial crisis. Collateralized debt obligations and real estate investment trusts are regaining popularity, according to IOSCO.

The International Organization of Securities Commissions has recommended creating a college to improve oversight of credit rating agencies. The college would facilitate information sharing about the agencies. "The dispersion of internationally active [credit rating agency] affiliates worldwide poses a challenge to supervisors, as their perspective may be limited to the [credit rating agency] activities in their jurisdiction," according to IOSCO.

The staff of the International Organisation of Securities Commissions has released a report warning that cyberattacks on exchanges and other market infrastructure could threaten the financial system. The report also says cyberattacks have become more sophisticated and more difficult to defend against. "While cybercrime in securities markets has not had systemic impacts so far, it is rapidly evolving in terms of actors, motives, complexity and frequency," according to IOSCO.

Officials from major derivatives associations are calling on the International Organization of Securities Commissions to take a leading role in resolving concerns about cross-border application of certain rules.